Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were lower than U.S. rates. Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____ related to U.S. interest rates.
A)less; inversely
B)more; positively
C)less; positively
D)more; inversely

Question

Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were lower than U.S. rates. Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____ related to U.S. interest rates. ​
A)less; inversely
B)more; positively
C)less; positively
D)more; inversely

Quizplus · Accepted Answer

The Answer of Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were lower than U.S. rates. Therefore, for a given set of foreign interest rates, foreign demand for U.S. funds is ____ related to U.S. interest rates. ​
A)less; inversely
B)more; positively
C)less; positively
D)more; inversely

Other Things Being Equal, Foreign Governments and Corporations Would Demand